NOVI, Mich. (WXYZ) — "Everything was flawless. Did all my paperwork, got my check, and I'm done," said Kim Jermanus as she left Carvana in Novi Monday after selling the used car retailer a vehicle.
No one from Carvana told Jermanus that the State of Michigan suspended their license to operate.
A large state sign in the window reads, "This dealership is prohibited from buying, selling, offering for sale, brokering or dealing in vehicles and used vehicle parts as a mental for violation(s) of the Michigan Vehicle Code. "
State officials said the suspension went into effect Friday afternoon after it was alleged that the company committed a number of violations including "failing to maintain odometer records" and "improperly issuing temporary registrations."
"These continued violations create an ongoing imminent threat to the public health, safety or welfare of the public, requiring emergency action," according to the Michigan Department of State.
Still, Carvana was continuing to operate Monday.
In a statement to 7 Action News, a spokesperson for the used car retailer issued the following statement:
At Carvana, we are always extremely focused on the safety and satisfaction of our millions of customers. We work collaboratively and in strong partnership with state leaders and regulatory agencies in many states across the country. In most instances, arcane and outdated regulations have struggled to keep pace with our innovative business model, technology and surging customer demand for a new, convenient and accessible way to shop, buy and trade-in used vehicles.
We reject the Michigan Secretary of State’s allegations as baseless and reckless and we strongly disagree with the state’s heavy-handed and abrupt effort to shut down a growing Michigan business with tens of thousands of customers over what amounts to technical, paperwork violations involving title and transfer issues.
We have already corrected 99 percent of the technical paperwork violations cited in the state’s report and welcome the opportunity to address the state’s ongoing concerns through constructive dialogue, changes to outdated regulations through legislation, or in the courts.
We urge the Secretary of State to begin dialogue to resolve this matter as expeditiously as possible. Meanwhile we will continue serving our customers, creating jobs and investing in Michigan while this matter is being resolved.
Angela Benander, Deputy Chief of Communications for Secretary of State Jocelyn Benson said Carvana should not be in operation at this time.
"The Michigan Department of State protects consumers when they make what are often among their family’s most significant purchases and buy a car. The Department does this in strict accordance with state and federal laws and does not provide special treatment to any dealership, including large, national corporations," Benander wrote. "Department staff met with Carvana on multiple occasions to explain Michigan law and suggest pathways to compliance. But instead Carvana continued selling vehicles without titles to scores of Michigan families, putting the residents at risk of legal violations, fines, and other penalties."
After dropping off her vehicle for sale, Jermanus said she just wants to make sure the sale of her vehicle continues to be a smooth one.
"I just want to make sure everything goes through, my check go through. That's what I'm worried about right now," she said.
